Competition and the public sector

It is clear that the government, both national and local, can, through its actions or inaction, have a significant impact on competition and the conditions for competition in the country. The government has a significant responsibility to remove any barriers to competition that new and smaller businesses may face when they start up and try to grow alongside larger competitors. The government can also be a participant in competitive markets, and it is important in such cases that it avoids distorting competition. In these instances, it is also subject to the fundamental rules of competition law, such as those concerning the prohibition on collusion and the abuse of a dominant market position.

Among the roles of the Competition Authority is to ensure that actions by public authorities do not restrict competition and to advise the government on ways to make competition more effective and to facilitate the entry of new competitors into the market, as set out in paragraph c of Article 8(1). Article of the Competition Act.

• For the purpose of carrying out its role regarding public restrictions on competition, the Competition Authority has the following powers under the Competition Act:
• Financial separation under Article 14 – The Competition Authority may order financial separation where a public undertaking or an undertaking operating in part under a public monopoly or protection, between, on the one hand, the part of the undertaking's activities which benefits from a concession or protection and, on the other hand, the part of its activities which is in free competition with other undertakings.
• Binding decisions on the basis of Article 16. Art. – The Competition Authority may take action against acts of public authorities to the extent that they may have an adverse effect on competition, provided that specific legislation does not contain special rules on the authorisation or obligation for such acts.
• Birting álita á grundvelli 18. gr.  – Telji Samkeppniseftirlitið að ákvæði laga og stjórnvaldsfyrirmæla stríði gegn markmiði laga þessara og torveldi frjálsa samkeppni í viðskiptum skal eftirlitið vekja athygli ráðherra á því áliti. Slíkt álit skal einnig birta almenningi á fullnægjandi hátt, t.d. með fréttatilkynningu til fjölmiðla eftir að það hefur verið kynnt ráðherra.
• Útgáfa álita eða tilmæla á grundvelli c-liðar 1. mgr. 8. gr. –  Í þeim tilgangi að gæta þess að aðgerðir opinberra aðila takmarki ekki samkeppni getur eftirlitið beint tilmælum til stjórnvalda og bent þannig á leiðir til þess að gera samkeppni virkari og auðvelda aðgang nýrra samkeppnisaðila að markaði.

Fundamental principles of competition law apply to public bodies.

It should be borne in mind that other fundamental principles of competition law apply to public bodies in the same way as to other parties, provided that this concerns economic activity falling within the scope of the law. Public bodies that meet these conditions are therefore not exempt from the competition law prohibition on collusion with competitors and the abuse of a dominant market position. In other words, the same competition rules apply to public undertakings as to private companies, unless otherwise provided for in specific legislation.

Breaches of the law can result in fines.

Breach of instructions issued by the Competition Authority pursuant to Article 14 of the Competition Act, or of measures, actions or interim decisions under Article 16, is subject to administrative fines in accordance with Article 37 of the Competition Act. Fines may amount to up to 10% of the total turnover of the relevant undertaking.

Opinions and instructions issued by the Competition Authority pursuant to c-item of the first paragraph of Article 8 and/or Article 18 of the Competition Act do not constitute an administrative act. The Competition Authority is, however, entitled to follow up on such opinions with enquiries to the person at whom the opinion was directed, and responses to such enquiries shall normally be published on the Authority's website.

Drafting reports on bills

The Competition Authority also has an important role to play in drafting submissions on draft bills. Each year, the Competition Authority receives dozens of requests for submissions and, in each case, assesses whether there is cause to submit a response. The Authority can thus proactively point out the potential competition-restricting effects of the proposed bill. The Authority's main opinions are published on the institution's website.

Frekari upplýsingar

Laws and regulations

• Procedure
• Procedural rules

Complaints and enquiries

• Requirements for papers
• Assessment of the occasion
• Anonymity and procedure
• Prioritisation